Huron farmland values continue to climb

Farmland values in Huron County climbed in 2025, and that trend is expected to continue this year.

By John Miner 

After dropping slightly in 2024, farmland values continued their upward climb in Huron County last year, according to the latest report by real estate appraisal firm Valco Consultants.

The report pegged average land values for Huron County at slightly more than $30,000 an acre in 2025, a 4.1 per cent increase from the year before.

At the high end, some Huron County farms sold for just shy of $50,000 an acre. At the low end, some land went for under $20,000.

The annual Valco land value report covers 11 southwestern Ontario counties - Huron, Perth, Oxford, Middlesex, Elgin, Lambton, Kent, Essex, Bruce, Grey, and Wellington.

Huron had the fourth highest average prices of the 11 counties with Oxford the highest at more than $35,000 an acre. Essex had the lowest at under $20,000 an acre on average. The overall average for the 11 counties was $27,258 an acre.

A decade ago, farmland in Huron County was selling on average for less than $15,000 an acre.

Report author Ryan Parker said livestock appeared to be a major factor in the land price difference between counties in 2025.

Beef and hog operations enjoyed very good margins in 2025 and livestock-dense areas had firm land values. But in areas southwest of London and along Lake Erie, where there are fewer livestock operations, demand was lacking.

One change in the farmland market that Parker observed is the number of listings of farm properties is up significantly from three years ago. There has also been an increase in the number of farms put on the market that do not sell.

“As margins have tightened, especially in the crop sector, buyers have logically become more selective, which has resulted in overpriced farms not selling,” he said.

Buyers have had more time to consider a purchase, unlike a few years ago when they needed to make a snap decision if they wanted a shot at buying land.

“To me, it’s a better market. It is more sustainable,” Parker said in an interview.

He sees the trends from 2025 continuing in 2026 with crop prices flat.

Demand is likely to be higher in livestock-dense areas and further north, while it will likely be lower in southern areas with fewer livestock farms, he said.

What could swing prices would be a significant change in interest rates. Lower rates could trigger higher land prices, while a jump in rates could push farmland values down.

Another key factor to watch is the response of sellers to the slower market.

“If vendors lower their expectations, it is possible that could drag overall farmland values down.”

In the past year, the vast majority of farmland was purchased by local farmers, Parker said.

Investment funds have been less active in the market the last couple of years because land prices haven’t been climbing as fast, making land less attractive. Parker estimates that investment fund action in the market is now at the lowest level it has been in the last 10 years.

“We actually have some pockets where investors are trying to sell right now.”